(a) The Adjutant General is authorized to establish morale,
welfare and recreation facilities within the state as in his or her
judgment may be necessary and proper for military purposes.

(b) Notwithstanding any other provision of this code to the
contrary, the Adjutant General is authorized to establish a
nonappropriated fund instrumentality for the purpose of operating
the morale, welfare and recreation facilities.

(c) A nonappropriated fund instrumentality established under
this section may:

(1) Contract for goods and services;

(2) Hire employees under terms and conditions as it may
negotiate, subject only to applicable state and federal labor laws;

(3) Establish a system of bookkeeping, accounting and auditing
procedures for the proper handling of funds derived from its
operations; and

(4) Perform any other action necessary to establish a board,
corporation or other entity for the purpose of operating the
morale, welfare and recreation facilities.

(d) A nonappropriated fund instrumentality established under
this section is solely responsible for its operations. No debt of
the nonappropriated fund instrumentality is a debt of the state.
No action of the nonappropriated fund instrumentality is an action
of the state, nor does it obligate the state in any manner.